A Strange Market Today, Be Careful Out There
Skerdian Meta • 2 min read
The forex market seems to be behaving quite strangely today if you´ve noticed. It was easy to find the theme earlier today; it was all about USD weakness.
But now everything has changed. EUR/USD jumped higher after Draghi´s conference and has been crawling higher ever since, despite him being his usual dovish self.
GBP/USD jumped during Carney´s speech, but then it dived back down before moving higher again. Now it´s on the way up, which is strange, but that´s how the forex market is today.
USD/JPY has been charging higher as well in the last several hours. This means that the Yen is getting beaten up, while the Buck seems to be the stronger currency.
Even the commodity currencies, which usually move together, are all mixed up today. The Kiwi and the Aussie were in demand this morning, but they have lost all their gains in the afternoon.
That´s not the case with the Loonie though. As my colleague Eric pointed out, USD/CAD has been in retreat, so the Canadian Dollar has gained nearly 100 pips today, although that´s mostly due to higher oil prices. There is a correlation between USD/CAD and oil, oil goes up, USD/CAD dives.
Anyway, this is how the market is behaving today. FED member Janet Yellen will take the spotlight later in the evening Maybe she will succeed in giving the market a direction. Until then, try to keep trades small and tight guys.
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